Australia Stocks Extend Gains Despite Wall Street Decline; Asia Markets Closed for Holiday

The Australian stock market extended its gains on Wednesday, despite a decline in Wall Street overnight, as most Asia markets remained closed for the Lunar New Year holiday. The S&P/ASX 200 index rose 0.87% to 8,417.6, hitting a new all-time closing high, while the broader-based Topix advanced 0.42%, after the indexes closed lower in the previous session.

Minutes from the Bank of Japan's December meeting released Wednesday showed members discussed neutral interest rates and monetary policy conduct. The BOJ has been debating how far borrowing costs should be raised as inflation remains above its 2% target while wage hikes broaden due to labor shortages. Japan's central bank had hiked interest rates by 25 basis points to 0.5% in its meeting last week, bringing its policy level to its highest rate since 2008.

Australia's S&P/ASX 200 rose 0.87% to end the day at 8,417.6, hitting a new all-time closing high, while the broader-based Topix advanced 0.42%, after the indexes closed lower in the previous session.

The strong performance of the Australian market comes despite a decline in Wall Street overnight, as key U.S. benchmarks finished lower, weighed down by the Nasdaq 100. All of the Magnificent Seven slid, paced by Nvidia, which picked up momentum to close around nearly 9% higher. The chipmaker lost 17%, or almost $600 billion in market value, in the previous session to clock the biggest ever one-day drop in value for a U.S. company.

The overnight decline in Wall Street was primarily driven by two factors:

1. Tech Stocks' Weak Performance: Tech stocks led Wall Street lower, with Dell and HP delivering less-than-bullish earnings forecasts, sending both companies' share prices down by nearly 12%. This weakness in tech stocks could spill over into the Australian market, as tech stocks are a significant component of many indices, including the ASX 200.
2. Fisher & Paykel Healthcare's Earnings Miss: Fisher & Paykel Healthcare reported a miss on its bottom line and FY25 guidance, which could weigh on investor sentiment in the Australian market. As a healthcare company, its performance may influence other healthcare stocks listed on the ASX.

These factors, along with the broader market sentiment, could impact the Australian market, potentially leading to a lower open for the ASX 200. However, it's important to note that the Australian market may also be influenced by local-specific factors and news, which could mitigate or exacerbate the impact of the overnight decline in Wall Street.



In conclusion, the Australian stock market extended its gains on Wednesday, despite a decline in Wall Street overnight, as most Asia markets remained closed for the Lunar New Year holiday. The strong performance of the Australian market comes despite a decline in Wall Street overnight, as key U.S. benchmarks finished lower, weighed down by the Nasdaq 100. The overnight decline in Wall Street was primarily driven by two factors: tech stocks' weak performance and Fisher & Paykel Healthcare's earnings miss. These factors, along with the broader market sentiment, could impact the Australian market, potentially leading to a lower open for the ASX 200. However, the Australian market may also be influenced by local-specific factors and news, which could mitigate or exacerbate the impact of the overnight decline in Wall Street.